Chapter 7 cold chain logistics

Sunil Sharma © Oxford University Press 2011 © Oxford University Press 2011 Sunil Sharma

SUPPLY CHAIN MANAGEMENT Concepts, Practices, and

Implementation

Ankush Guha, Assistant ProfessorFaculty Operations & Supply Chain,

Institute for Technology & Management

Ankush Guha

Sunil Sharma © Oxford University Press 2011 © Oxford University Press 2011 Sunil Sharma

Chapter 7Cold Chain Logistics

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Sunil Sharma © Oxford University Press 2011 3

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Learning Objectives

• What is cold chain?

• Drivers to Cold Chain Infrastructure

• Cold Supply Chain Models

• Cold Supply Chain Problems and Issues


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Cold Chain : What is it?

• A cold chain is basically a logistics system, which helps in

maintaining and providing a series of facilities for ensuring

ideal storage conditions for the perishables from the point of

origin to the point of sale.

• A well developed and efficiently organized cold chain

reduces wastage, spoilage and helps keeps the perishables

intact thereby helping to maintain the quality of the harvested

food products.

Sunil Sharma © Oxford University Press 2011

Current scenario of cold supply chain Currently, the Indian cold chain market is worth $3 billion. The market is expected to grow to $12.4 billion by the

end of 2015. Cumulative capacity of India is nearly 25 million tonnes,

resulting in loss of about 40% of the agri-produce post-harvest.

Uttar Pradesh has the maximum 1,579 numbers of cold chains followed by West Bengal at the second place with 531 cold storages, Maharashtra 460 and Punjab 420.

The current market demand is 10 times more than what we have today.

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Cold Chain Model

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Cold Chain

Industry Sectors

Dairy & Milk products Poultry product Fruits & Vegetables Processed food Pharmaceuticals Grocery Retail Bakery products

Cold Chain Infrastructure

Pre cooling Storage methods Temperature controls Transportation Handling equipments Insulated packaging

Cold Chain Management

Data management Standard procedures Quality control check Regulatory compliance

Customer Satisfaction

Product quality Deliver schedules


A well designed Cold Chain helps to :

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• Reduce costs

• Maintain product quality and freshness

• Reduce wastages

• Reduce returns of expired stocks

• Increase customer satisfaction


Drivers to cold chain infrastructure

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• Growth in organized retail

• Shift towards horticulture crops

• Growth in processed food sector

• Demand from pharmaceuticals sector

• Government initiatives

• Creation of agri-export zones (AEZs)

• Private sector initiatives


Cold Chain Applications

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• Pharmaceuticals

• Biotechnology

• Healthcare

• Blood Banks

• Seafood

• Frozen Food

• Meats

• Dairy Products


Challenges to Cold Chain

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• Poor infrastructure

• 30% of the fruits and vegetables grown get

wasted

• High investment cost

• High operational cost

• Ever increasing power tariff in the country

• Longer pay back period


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Cold Chain Infrastructure :

• Pre-cooling facilities

• Cold Warehouses

• Temperature-controlled Transport

• Insulated Packaging

• Information Management Systems

• Traceability


Quality Control Measures

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• Deploying temperature-controlled vehicles

• Maintaining temperature during transport

• Defined pick-up and delivery times

• Better handling procedures

• Mechanized handling equipments to reduce damages


Industries using cold supply chain

Fruits & vegetables

Ice cream sector & confectionery

Dairy products

Meat & marine productsFloriculture

Pharmaceutical Products

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Players of cold chain

Snowman

Carriers

Crystal

Refcon

Bulkani deep freeze

Glacio cold chain

GATI (Kausar)

R.K. Foodland

Trans cold chain

Sensitech

Fresh & Healthy(Concor)

Weber distribution

Apollo Everest Kool Solutions, And Many more

http://www.sensitech.com/index.html

http://everest-cold.com/index.php


Challenges in cold supply chain

Rising Real Estate Cost

Location for Cold Storage

Lack of Proper Infrastructure

High Energy Cost

Uneven Distribution of Capacity

The cold storages present in India can cater to single

commodities only

FDI Restrictions in Retail

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Chapter 7 cold chain logistics

Education

Transcript of Chapter 7 cold chain logistics